LEGAL ANALYSIS: Hertz's impermissible redemption rescission and possible noteholder recourse - Debtwire

LEGAL ANALYSIS: Hertz’s impermissible redemption rescission and possible noteholder recourse

01 July 2022 - 04:22 am UTC

Hertz Corp‘s USD 1.25bn second lien notes were originally intended, in part, to satisfy USD 450m in senior notes due 2019.  However, approximately two months after the June 2017 second lien issuance, Hertz had a change of heart, and rescinded its redemption notice, electing not to apply the proceeds to the 2019 notes.  According to Xtract Research, Hertz’s redemption rescission was impermissible, and this special report discusses how Hertz’s failure to pay the 2019 notes would not only constitute an event of default susceptible to acceleration, but also opens the door for a possible cross payment default in favor of Hertz’s senior and second lien noteholders.

 

CLICK HERE to the view the Special Report.
CLICK HERE for Xtract Research‘s report on covenant implications of Hertz’s second lien note issuance.  
CLICK HERE for a snapshot of Hertz’s 2Q17 earnings.